FILINGLOUNGE

Call Us On +91 9355582894

Blog Contact Us
Company Registration

Documents Required for :
ITR-4 Return Registration

Click Here

ITR-4 Return Registration in India

ITR-4, also known as Sugam, is the Income Tax Return form applicable to individuals and Hindu Undivided Families (HUFs) who have opted for the presumptive income scheme under sections 44AD, 44ADA, or 44AE of the Income Tax Act. It is primarily used by taxpayers with business income who wish to file a simpler tax return.

Eligibility Criteria for ITR-4

The ITR-4 form, also known as Sugam, is intended for individuals, Hindu Undivided Families (HUFs), and Firms (other than LLPs) who are eligible for the presumptive taxation scheme under sections 44AD, 44ADA, and 44AE of the Income Tax Act. Here is a detailed breakdown of the eligibility criteria:

Eligible Taxpayers:
  • Individuals: Individuals who are residents of India and have opted for presumptive taxation under sections 44AD, 44ADA, or 44AE.
  • Hindu Undivided Families (HUFs): Resident HUFs engaged in eligible businesses or professions under the presumptive taxation scheme.
  • Firms: Resident firms (excluding LLPs) opting for presumptive taxation under sections 44AD, 44ADA, or 44AE.
Types of Income Covered:
  • Business Income: Income from business under Section 44AD: This section applies to small businesses with a turnover of up to ₹2 crores. Income is presumed to be 8% (6% for digital transactions) of the turnover.
  • Professional Income: Income from professions under Section 44ADA: This section applies to professionals such as doctors, lawyers, architects, etc., with gross receipts up to ₹50 lakhs. Income is presumed to be 50% of the gross receipts.
  • Income from Goods Carriages: Income from plying, hiring, or leasing goods carriages under Section 44AE: This section applies to taxpayers engaged in the business of goods carriages, where income is presumed to be a certain amount per vehicle per month.
  • Additional Income:
    • Salary/Pension: Income from salary or pension can be included along with presumptive business or professional income.
    • Income from One-House Property: Income from one-house property can also be reported in ITR-4.
    • Other Sources: Income from other sources like interest income, excluding winnings from lottery or horse races.

Ineligibility

Taxpayers with the following conditions are ineligible to file ITR-4 and should opt for other ITR forms:

  • Capital Gains: Taxpayers with income from capital gains need to file other appropriate ITR forms.
  • More Than One House Property: Income from more than one house property makes the taxpayer ineligible for ITR-4.
  • Foreign Income/Assets: Taxpayers with foreign income or holding foreign assets cannot file ITR-4.
  • Agricultural Income: Taxpayers with agricultural income exceeding ₹5,000.
  • Speculative Income: Income from speculative businesses or other non-presumptive income.

Presumptive Taxation Schemes

  • Section 44AD: Applicable to small businesses with turnover up to ₹2 crores. Income is presumed to be 8% (6% if transactions are through digital means) of the turnover.
  • Section 44ADA: Applicable to professionals with gross receipts up to ₹50 lakhs. Income is presumed to be 50% of the gross receipts.
  • Section 44AE: Applicable to taxpayers engaged in the business of plying, hiring, or leasing goods carriages. Income is presumed to be a certain amount per vehicle per month.

Deductions and Exemptions:

  • Section 80C: Deduction up to ₹1.5 lakhs for investments in PPF, NSC, ELSS, LIC premiums, etc.
  • Section 80D: Deduction for health insurance premiums.
  • Section 80E: Deduction for interest on education loans.
  • Section 80G: Deduction for donations to specified funds and charitable institutions.
  • Section 80TTA: Deduction up to ₹10,000 on interest earned from savings accounts.

Important Deadlines:

  • Advance Tax Payment: Ensure advance tax payments are made on or before the due dates (15th June, 15th September, 15th December, and 15th March) if applicable.
  • Filing Due Date: The due date for filing ITR-4 is usually 31st July of the assessment year, but it is advisable to check for any extensions announced by the Income Tax Department.

ITR-4 Return Filing with Filing Lounge: Why Choose Us?

Choose Filing Lounge for your ITR-4 return filing for a streamlined and professional experience. Our expert tax professionals provide personalized guidance, ensuring accuracy and compliance with the latest tax laws. Our user-friendly platform simplifies the process with step-by-step instructions, saving you time and effort. We maximize your deductions, optimize benefits under presumptive taxation, and ensure timely filing with reminders for important deadlines. Your personal and financial information is securely handled with advanced data protection measures. Our competitive pricing has no hidden costs, and our dedicated customer support is available to assist you throughout the process. For a smooth, efficient, and hassle-free ITR-4 filing, visit Filing Lounge today.

Related Guides

Documents Required For ITR-4

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

ITR-4 FAQ's

Who can opt for presumptive taxation under Section 44AD?

Small businesses with a turnover of up to ₹2 crores can opt for presumptive taxation under Section 44AD. This includes individuals, HUFs, and firms (excluding LLPs).

Can professionals opt for presumptive taxation?

Yes, professionals such as doctors, lawyers, architects, etc., with gross receipts up to ₹50 lakhs can opt for presumptive taxation under Section 44ADA.

Is maintaining books of accounts mandatory under presumptive taxation?

No, taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE are not required to maintain detailed books of accounts

What is the due date for filing ITR-4?

The due date for filing ITR-4 is typically July 31st of the assessment year. However, this can be extended by the Income Tax Department, so it is advisable to check for any updates.

What happens if I file my ITR-4 late?

Late filing of ITR-4 can attract a penalty under Section 234F. The penalty can range from ₹1,000 to ₹10,000 depending on the delay and income level.

Can I revise my ITR-4 after filing?

Yes, you can revise your ITR-4 return before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier, if you discover any mistakes or omissions.

Can I switch back to regular taxation after opting for presumptive taxation?

Yes, you can switch back to regular taxation. However, if you opt out of the presumptive taxation scheme under Section 44AD, you cannot opt for the scheme again for the next five assessment years.

What happens if my turnover exceeds the limit during the year?

If your turnover exceeds ₹2 crores for businesses under Section 44AD or ₹50 lakhs for professionals under Section 44ADA, you cannot opt for presumptive taxation for that financial year. You will need to maintain books of accounts get them audited if required and file the appropriate ITR form (like ITR-3 or ITR-5).

Is it mandatory to pay advance tax under the presumptive taxation scheme?

Yes, taxpayers opting for the presumptive taxation scheme under Section 44AD or 44ADA are required to pay the entire amount of advance tax in one installment on or before March 15 of the financial year.

Do I need to attach any documents while filing ITR-4?

No, you do not need to attach any documents or proofs while filing ITR-4 online. However, you should retain the documents for your records and in case they are requested by the Income Tax Department during assessment.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.